CEO reassures all fastjet passengers

Published: 30 June 2018 (1412 Views)

Fastjet - the budget African airline founded by Stelios Haji-Ioannou - reassuring all fastjet passengers, the travel industry and our partners that the company will continue to operate in a state of 'business as usual'.

The fastjet chief executive Nico Bezuidenhout said, "Over the past 24 hours a number of media reports have been published noting the decline in fastjet's share price following the company's announcement yesterday regarding its cash position.

"I would like to reassure all fastjet passengers, the travel industry and our partners that the company will continue to operate in a state of 'business as usual' with flights across our network in Tanzania, Zimbabwe, Mozambique, Zambia and South Africa operating as normal."

Shares in fastjet soared after the company secured up to $12m (£9.1m) in emergency funding.

The company warned earlier this week that it might go bust, but it announced on Friday that it will raise $7m through a share sale, while Solenta Aviation, its biggest shareholder, will provide a further $3m. In addition Fastjet wants to raise up to $1.6m through an open offer.

Following the announcement, shares jumped 136 per cent.

It came after the company revealed on Wednesday it had just $3.3m in cash left.

The funds will provide the group with "sufficient working capital for the remainder of 2018", Fastjet said.

Fastjet also revealed large annual losses and revenues down by more than a third from $68.5m to $46.2m.

The company has been slashing costs over the past two years in an attempt to turn its fortunes around.